Chinese Copper Scrap Prices Rallied Sharply
Recently, we can hear a lot of news that suppliers and manufacturers have increased the price of their products. The most important reason is that the material s cost have grown up so much, that they have to increased the price of related products too.
Here I d like to take the copper price as an sample.
SHANGHAI, Nov. 29 (SMM) – On Monday, People’s Bank of China withdrew a 10 billion RMB for four days in a row on Tuesday. Lending market, overnight repurchase rates and Shanghai Interbank Offered Rate (Shibor) increased, refraining capitals from speculating investors. SHFE 1702 copper opened at 48,260 RMB/ton and then dropped due to positions closing by longs. The contract finally closed at 46,750RMB /ton, down 2,070RMB/ton. Positions fell 11,568 to 218,000 and trading volumes rose 32,372 to 354,000. Positions of all SHFE copper contracts were down 48,572 to 547,904 with trading volumes up 91,228 to 952,000 lots. SHFE 1702 copper plumped below the 5-day moving average on Tuesday with longs taking profits.
Expert analysis, the main reason for rising copper prices as below:
First, the Federal Reserve interest rate is expected to weaken, good non-ferrous metals prices; Second, China’s manufacturing PMI performance than expected, pushing up investor optimism, market capital injection, support non-ferrous metal prices;
Third, the dollar index soared, the RMB exchange rate continues to fall, increasing import costs, triggering domestic prices of non-ferrous metals.
Fourth, rising domestic copper smelting costs and inventory support copper prices.
In the short time, the copper price maintain high.
My company specializes in electrical products, as the copper is one of the essential materials, copper prices will certainly lead to the rise of our related products.
We are specilised in the inverter, circuit breakers and contactors.
Many customers say that the exchange rate increased, indeed, we also admit, but the crazy rise of the raw materials more higher than the exchange rate. So sometimes the exchange rate can be ignored
Here I want to tell you a good news, everybody , in this month our company still keep same price , next month will be increase prices, if anybody have new inquiry or new orders, pls tell us quickly
You know the opportunity knocks at the door only once.